KUALA LUMPUR (Nov 20): TA Securities Research predicts that the Malaysian economy will experience a more robust growth trajectory of 5.0% in 2024, driven by the sustained global economic recovery, particularly in China.

In a note on Monday, the research house said Malaysia’s real GDP increased by 3.3% year-on-year (y-o-y) in the third quarter of 2023, which was above its revised expectations during the GDP preview and the median forecast of analysts polled by Bloomberg.

The Malaysian government’s commitment to pro-growth initiatives is expected to continue, further supported by increased political stability. This, in turn, has the potential to boost confidence among foreign investors and result in a greater influx of capital and portfolio investments.

At present, TA Securities maintains its 4.6% y-o-y growth projection for the fourth quarter, aligning with an updated annual growth target of 4.0%. However, it acknowledges that it anticipated the possibility of growth dipping below 4.0%, citing a weaker third-quarter growth but it outperformed its expectations. Nonetheless, TA Securities remains vigilant and open to adjustments periodically especially in response to any significant setbacks in the country’s economic trajectory